1. Delhi’s economy estimated to grow at 12.76 per cent in 2016-17

Delhi’s economy estimated to grow at 12.76 per cent in 2016-17

The Delhi government today pegged the growth of the city's service-driven economy at 12.76 per cent for the current fiscal as against the country's projected 7.1 per cent.

By: | New Delhi | Published: March 8, 2017 12:30 AM
The report has not mentioned about any impact of demonetisation on the city’s economy.

The Delhi government today pegged the growth of the city’s service-driven economy at 12.76 per cent for the current fiscal as against the country’s projected 7.1 per cent. A day ahead of presentation of the budget, the AAP government tabled the Economic Survey in the assembly, estimating the size of the GSDP (Gross State Domestic Product) at 6.2 lakh crore for 2016-17, at current prices. It said the economy of the capital city is estimated to grow at 12.76 per cent as against 12.09 per cent logged during 2015-16. The report has not mentioned about any impact of demonetisation on the city’s economy. According to the report, the per capita income of Delhi, which is already three times the national average, is likely to cross Rs 3 lakh during 2016-17. “The per capita income of the city was nearly three times the national average at Rs 2,73,618 in 2015-16 as compared to Rs 2,49,004 in 2014-15,” it said.

The report, tabled by Deputy Chief Minister Manish Sisodia, said Delhi’s economy has a predominant service sector whose contribution stands at at 82.26 per cent to the GSDP during 2016-17 followed by contribution of secondary and primary sectors. The report pegged Delhi’s tax collection at 20.84 per cent in the current year, but there has been a reduction in its revenue surplus. The city collected Rs 30,225.16 crore in taxes during 2015-16 with a growth rate of 13.61 per cent as compared to the growth of 2.64 per cent in 2014-15, it said. Revenue surplus (actual amount of net income over and above the projected amount) of Delhi has been pegged at 0.89 per cent (estimate) of the GSDP in 2016-17.

It was 1.57 per cent of the GSDP in 2015-16 at Rs 8,656 crore and Rs 6,075 crore in 2014-15, the report said. However, the survey said Delhi had a fiscal surplus, which means its income exceeded its spending, in 2015-16 at Rs 1,321.92 crore, which is 0.24 per cent of the GSDP, thus the “overall financial position of Delhi is sound”. “Excise recorded the highest growth of 23.82 per cent. Tax collections under stamps and registration, VAT and Motor Vehicle Tax recorded a growth of 20.85, 10.70 and 3.09 per cent respectively,” it said.

According to the report tabled in the Delhi Assembly, the per capita income of Delhi, which is already three times the national average, is likely to cross Rs 3 lakh during 2016-17. “The per capita income of the city was nearly three times the national average at Rs 2,73,618 in 2015-16 as compared to Rs 2,49,004 in 2014-15. “The advance estimate of per capita income of Delhi at current prices during 2016-17 is estimated at Rs 3,03,073,” it said. The report highlights an oft-repeated complaint of the Arvind Kejriwal government that the Centre is depriving it of its due share in central taxes, which has been stagnant at Rs 325 crore since 2001-02 as the state has not been covered under the recommendations of the 14th Central Finance Commission (CFC).

Despite this, the state was releasing funds to the civic bodies according to the recommendations of the third Delhi Financial Commission, it says. The recommendations of the fourth DFC has not yet been implemented. The GSDP is defined as a measure of the volume of all goods and services produced within the boundaries of the state during a given period of time. The report said that the flow of central assistance in terms of plan grants has decreased substantially from Rs 2020.19 crore in 2014-15 to Rs 1353.27 crore in 2015-16 mainly due to reduction on account of release of special grant for JNNURM, central road fund, water projects and power sector.

“Similarly, the non-plan grants from the Centre has increased considerably from Rs 327.95 crore in 2014-15 to Rs 2905.02 crore in 2015-16 mainly due to compensation on account of phasing out of Central Sales Tax and implementation of VAT,” it said. From 2014-15 onwards, funds for centrally sponsored schemes form part of the Central Plan Assistance. Referring to environmental pollution, the survey said high vehicular density has led to spike in levels of nitrogen dioxide (NO2), a major air pollutant, in the city.

In 2015, the average level of NO2, a toxic byproduct of diesel combustion, was 73 micrograms per cubic metre (ug/m3), as against the permissible annual average of 40 ug/m3. It said the number of motor vehicles on the streets of Delhi stood at 97.05 lakh at the end of 2015-16, registering a rise of nearly 10 per cent over the last year. Delhi is a bustling metropolitan city with the vehicle count rising steadily, even as the government has been employing measures to encourage use of public transport to cut the rising pollution level.

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“The total number of motor vehicles on the roads of Delhi as on March 31, 2016 touched 97.05 lakh, showing an increase of 9.94 per cent over previous year,” the survey said. On health sector, it said the number of beds in Delhi hospitals increased to 49,969 in 2015-16, nearly 20 per cent more than what it was six years ago. “The total number of hospital beds increased from 41,706 in 2010 to 49,969 in 2015-16 thereby also increasing the bed population ratio (beds per 1,000 persons) from 2.54 to 2.76 in the same period,” the survey said.

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